West Palm Beach, Sba Agree To Be Partners

The city of West Palm Beach and the U.S. Small Business Administration signed a partnership agreement on Wednesday to work together to help small businesses expand.

The city also announced plans for a small business incubator geared for minority- and women-owned businesses.

"The entrepreneurs who are out there need our help and your help," said West Palm Beach Mayor Joel Daves, addressing representatives from financial institutions at the announcement of the agreement.

West Palm Beach's ongoing redevelopment effort "has to be something small business can participate in," Daves said.

John Zakian, associate city administrator, said the agreement with the SBA emphasizes the continuing partnerships the city has been forging to help small business. He said the city in the last year has raised $2 million for small business loans. The city also plans to leverage federal grants to create a small business incubator in the north end of downtown West Palm Beach.

"If you're going to ensure a community has sustained growth, you can't put all your eggs in one basket -- one corporation," Zakian said. Instead, he said, lenders should be investing in small businesses.

The SBA said it would help lenders bridge the gap small-business owners often face in obtaining financing. The federal agency has several loan programs that guarantee loans made through banks to small businesses.

Zakian said the goal is for SBA eventually to open an office in West Palm Beach.

Gilbert Colon, deputy director of the SBA's South Florida District, said only 38 of almost 300 SBA-backed loans last year in Palm Beach County were made to businesses in the city. "We've got a lot of work to do in the city."

He said the federal agency is putting customers first by taking its expertise to the field, rather than waiting for small business owners to knock on its door. One step is a pilot office opening Feb. 25 that will centralize loan processes and other "back room" work in the SBA's South Florida District.

Colon urged financial institutions to help small business owners succeed by making loans.

"Work with a small business, be there for them. If they produce you will win. It's a win-win situation," Colon said. "A small business person doesn't want to fail. You know why? His or her life is on the line. They fail and their family fails."

Marcia Heroux Pounds can be reached at mpounds@sun-sentinel.com or 561-243-6650.